Question
In: Accounting
Rooney Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and...
Rooney Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak. From a standard batch of 16,000 pounds of raw chicken that costs $8,950, the company produces two parts: 3,000 pounds of drumsticks and 4,800 pounds of breast for a processing cost of $4,085. The chicken breast is further processed into 4,000 pounds of steak for a processing cost of $2,700. The market price of drumsticks per pound is $1.50 and the market price per pound of chicken steak is $4.70. If Rooney decided to sell chicken breast instead of chicken steak, the price per pound would be $2.50.
-
b-1. Reallocate the joint cost to the joint products, drumsticks and breasts, using relative market values as the allocation base.
-
b-2. Calculate the gross profit for each product.
-
c-1. Should Martin further process chicken breasts into chicken steak? (Use the assumption made in requirement b-1).
-
c-2. How would the profit be affected by your answer in c-1?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Harper Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and...
Harper Chicken Corporation processes and packages chicken for
grocery stores. It purchases chickens from farmers and processes
them into two different products: chicken drumsticks and chicken
steak. From a standard batch of 12,000 pounds of raw chicken that
costs $7,000, the company produces two parts: 2,800 pounds of
drumsticks and 4,200 pounds of breast for a processing cost of
$2,450. The chicken breast is further processed into 3,200 pounds
of steak for a processing cost of $2,000. The market price...
Stuart Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and...
Stuart Chicken Corporation processes and packages chicken for
grocery stores. It purchases chickens from farmers and processes
them into two different products: chicken drumsticks and chicken
steak. From a standard batch of 17,000 pounds of raw chicken that
costs $9,250, the company produces two parts: 3,400 pounds of
drumsticks and 5,700 pounds of breast for a processing cost of
$6,502. The chicken breast is further processed into 4,900 pounds
of steak for a processing cost of $2,900. The market price...
SOLVE FOR C-2 Munoz Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens...
SOLVE FOR C-2
Munoz Chicken Corporation processes and packages chicken for
grocery stores. It purchases chickens from farmers and processes
them into two different products: chicken drumsticks and chicken
steak. From a standard batch of 16,000 pounds of raw chicken that
costs $8,500, the company produces two parts: 2,400 pounds of
drumsticks and 5,200 pounds of breast for a processing cost of
$4,748. The chicken breast is further processed into 4,400 pounds
of steak for a processing cost of $2,400....
Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Quality Chicken...
Quality Chicken grows and processes chickens. Each chicken is
disassembled into five main parts. Quality Chicken is computing the
ending inventory values for its July 31, 2014, balance sheet.
Ending inventory amounts on July 31 are 20 pounds of breasts, 2
pounds of wings, 5 pounds of thighs, 6 pounds of bones, and 2
pounds of feathers.
Quality Chicken's management wants to use the sales value at
splitoff method. However, management wants you to explore the
effect on ending inventory...
Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches....
Boney Corporation processes sugar beets that it purchases from
farmers. Sugar beets are processed in batches. A batch of sugar
beets costs $53 to buy from farmers and $18 to crush in the
company's plant. Two intermediate products, beet fiber and beet
juice, emerge from the crushing process. The beet fiber can be sold
as is for $25 or processed further for $18 to make the end product
industrial fiber that is sold for $39. The beet juice can be...
Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches....
Boney Corporation processes sugar beets that it purchases from
farmers. Sugar beets are processed in batches. A batch of sugar
beets costs $62 to buy from farmers and $21 to crush in the
company's plant. Two intermediate products, beet fiber and beet
juice, emerge from the crushing process. The beet fiber can be sold
as is for $32 or processed further for $33 to make the end product
industrial fiber that is sold for $81. The beet juice can be...
Bow Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches....
Bow Corporation processes sugar beets that it purchases from
farmers. Sugar beets are processed in batches. A batch of sugar
beets costs $53 to buy from farmers and $18 to crush in the
company's plant. Two intermediate products, beet fiber and beet
juice, emerge from the crushing process. The beet fiber can be sold
as is for $25 or processed further for $16 to make the end product
industrial fiber that is sold for $39. The beet juice can be...
Sohr Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches....
Sohr Corporation processes sugar beets that it purchases from
farmers. Sugar beets are processed in batches. A batch of sugar
beets costs $47 to buy from farmers and $33 to crush in the
company's plant. Two intermediate products, beet fiber and beet
juice, emerge from the crushing process. The beet fiber can be sold
as is for $30 or processed further for $35 to make the end product
industrial fiber that is sold for $105. The beet juice can be...
Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches....
Boney Corporation processes sugar beets that it purchases from
farmers. Sugar beets are processed in batches. A batch of sugar
beets costs $47 to buy from farmers and $10 to crush in the
company's plant. Two intermediate products, beet fiber and beet
juice, emerge from the crushing process. The beet fiber can be sold
as is for $15 or processed further for $14 to make the end product
industrial fiber that is sold for $59. The beet juice can be...
Joint-cost allocation, insurance settlement. Quality Chicken grows and processes chickens. Each chicken is disassembled into five...
Joint-cost allocation, insurance settlement. Quality Chicken
grows and processes chickens. Each chicken is disassembled into
five main parts. Information pertaining to production in July 2017
is as follows: Parts Pounds of Product wholesale selling price per
pound Breasts 100 .55 Wings 20 .20 Thighs 40 .35 Bones 80 .10
Feathers 10 .05 Joint cost of production in July 2017 was $50. A
special shipment of 40 pounds of breasts and 15 pounds of wings has
been destroyed in a fire....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A solution is prepared by dissolving 15 ml of methanol in 150.0 ml water at 25...
- Consider a newlywed who is planning a wedding anniversary gift of a trip to Canada for...
- We are evaluating a project that costs $868,000, has a life of eight years, and has...
- a.) Given sample data: 61.2, 61.9, 62.8, 63.1, 64.0, 64.3, 64.9, 65.5, 66.3 and 67.9, test...
- A research paper describes an experiment in which 74 men were assigned at random to one...
- 1. Which components would a retail organization consider while surveying/assessing the suitability of its products for...
- Design and inplement a synchronous counter that counts.
ADVERTISEMENT